Punjab-based DCM Engineering Ltd, a manufacturer of engine blocks and cylinder heads, expects to close the current financial year with a lower turnover of Rs 300 crore, as compared with Rs 350 crore in the last financial year due to the slowdown.
“This fiscal, especially December, was the worst for us as we had to slash production by almost 50 per cent. However, things improved in the following months. We achieved a growth of 7-8 per cent each in January and February 2009 as compared with December 2008. In March, we achieved a growth of 30 per cent. Overall, due to the slump in commercial vehicle sales, we expect to close the financial year with a turnover of Rs 300 crore,” said company's managing director J K Menon.
However, the company has a positive outlook for the next financial year and expects to utilise 70 per cent of the installed capacity. The company has an installed capacity of 5,500 tonne castings per month.
Besides, due to the slowdown in the auto sector, the company has put on hold its plan of setting up a unit in southern India. The proposed plant was to be set in Chennai with an investment of about Rs 200 crore. The company has already acquired 50 acre for the project.
“The proposed facility was expected to boost the annual capacity to 50,000 tonne. However, we will expand only when the capacity utilisation of the plant would be 100 per cent,” he added.
DCM Engineering has a plant in Ropar district of Punjab and supplies its products to automobiles companies including Hyundai, Maruti, Swaraj Mazda, Eicher Motors, Ashok Leyland, and Mahindra & Mahindra.
